Mobile Phone Industry Created 500,000 Jobs Via PLI, Minister Ashwini Vaishnaw Says

Telecom and IT minister Ashwini Vaishnaw said on Thursday that the production-linked incentive (PLI) scheme for mobile phone manufacturing has generated 500,000 jobs in the country. The minister was inaugurating Padget Electronics’ new manufacturing plant in Noida, which has a capacity to manufacture 25 million phones a year. Dixon Technologies’ subsidiary, Padget Electronics, has invested Rs. 256 crore to build the plant and will produce Xiaomi phones here.

For five years, the company has committed to produce Xiaomi mobile phones. “Due to PLI, the incremental job creation in the mobile industry is 5 lakh, and I’m confident that the number will increase in the next five years,” the minister said.

According to the minister, the plant will generate 5,000 job opportunities. Moreover, value addition in terms of development, component manufacturing, and exports has been increasing in the country.

Padget Electronics is one of the firms that has largely benefited from the PLI scheme. Leveraging the PLI, the company is set to fortify its mobile manufacturing ecosystem in India with world-class technologies. The company is planning to open another facility within 10 months with a capacity to produce 50 million units.

“It is a momentous step towards our commitment to boosting the local smartphone manufacturing system in India. We believe that this association will leverage our excellence and superior execution and Xiaomi’s expertise and leadership in the Indian business ecosystem,” Sunil Vachani, executive chairman at Dixon Technologies, said.

PLI is the central government”s ambitious manufacturing program, launched in 2020 as part of the “Make in India” initiative. The companies that have been qualified to be included in the Production-Linked Incentive (PLI) scheme will receive incentives to invest in India.

The scheme is designed to boost domestic production. However, the scheme has been partially fruitful due to major corporations’ unwillingness to join the party.